Auto parts maker Hero Motors Ltd on Tuesday garnered nearly Rs 300 crore from anchor investors ahead of its initial public offering (IPO), which opens for subscription on Sept.16.
The company allotted 3.57 crore equity shares to anchor investors at Rs 84 apiece, the top end of the IPO price band, according to a circular uploaded on BSE's website.
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Institutions that participated in the anchor book include ICICI Prudential Life Insurance Company Ltd, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Ltd, Societe Generale and ASAS Global Fund Incorporated VCC Sub Fund, among others.
Additionally, shares were allocated to ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Bank of India Mutual Fund.
Hero Motors has fixed a price band of Rs 79-84 per equity share for its Rs 1,000-crore IPO, which will remain open for subscription till Sept. 18.
The IPO comprises a fresh issue of equity shares aggregating up to Rs 600 crore and an offer-for-sale (OFS) of shares worth up to Rs 400 crore by promoters.
Under the OFS, O P Munjal Holdings will divest shares worth Rs 395 crore, while Hero Cycles Ltd will sell shares worth Rs 5 crore.
Of the fresh issue proceeds, Rs 190 crore will be used for repayment or prepayment of certain outstanding borrowings, while Rs 200 crore will be utilised for purchasing equipment required for capacity expansion at the company's facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining proceeds will be used for inorganic growth through unidentified acquisitions and other strategic initiatives, besides general corporate purposes.
Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) in the US, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.
The company caters to global customers including BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.
The company's shares are expected to debut on the stock market on Sept. 23.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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